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Gold & silver

Fresnillo trades higher as it confirms profits boost

London-listed Mexican silver miner Fresnillo PLC (LSE:FRES) reported a 30.1% rise in first-half revenue, to $1.94 billion for the six months to 30 June.

The performance was driven by higher gold and silver prices and higher gold sale volumes.

At the same time, production costs reduced 20.2% to $673.5 million.

Gross profit was up 160.7% to $1.02 billion, and net profit was up nearly 300% to $467.6 million.

“Our profitability has significantly improved, driven not only by favourable precious metals prices but also by a consistent operational performance and rigorous cost discipline. This has led to a substantial free cash flow generation,” said chief executive Octavio Alvídrez.

Fresnillo is paying an interim dividend of 20.80 cents per share.

Gold production was up 15.9% to 313,840 ounces, helped by operational optimisation at Herradura. Silver production fell 11.70% to 24.9 million ounces, mainly due to the closure of San Julián DOB and lower grades at other operations.

Cash and liquid funds stood at $1.82 billion at the period end.

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